Trends In Enterprise Mobility:Convergence of Mobile Business and Web ServicesSoftware & Information Industry Association BriefingMay 16th 2002 Nicholas D. Evans Emerging Technology Solutions KPMG Consulting, Inc. ndevans@kpmg.com (972) 373-7429 Agenda Emerging Technologies at KPMG Consulting State of the Enterprise Market IT Trends Converging on Business Drivers and Barriers to Adoption Mobile Business & Web Services Convergence Scenarios Best Practices Contacts & Further Reading Q&A Wireless Solution Offerings Emerging Technologies at KPMG Consulting The charter of the Emerging Technology Solutions practice is to keep KPMG Consulting in step with emerging and “disruptive” technologies by… 	 	Coordinating the identification of emerging technologies that are strategic to the business of our clients… 	 	Incubating the highest priority technologies within KPMG Consulting so that they can mature and… 	 	Launching them as either… new core solution offerings or  key differentiators for our existing solutions Emerging and Disruptive Technologies Solution Radar IT Trends Converging on Business 	 Mobile Business is just one of several technology trends creating the opportunity for business agility and competitive advantage Next generation infrastructure technologies such as real-time computing, embedded systems, web services, peer services, and wireless/mobile are best implemented and approached in a holistic manner that exploits the benefits of each They are closely inter-related....and often mutually required.…for example…. Web services enable anytime, anywhere access to information and transactions on any device and any platform Web services brings new development and deployment paradigms to enterprise software and to electronic business Mobile business brings new access paradigms to enterprise software and to electronic business Wireless/mobile is becoming a key node for digital services/web services transactions and processes Mobile Business & Web Services Wireless Data Examples Today’s enterprise landscape in terms of wireless and mobile deployments…. Supply Side Over-abundance of wireless middleware vendors…we expect consolidation and return to prominence of the major players such as IBM, Microsoft and Oracle Intelligent new solutions…for example, wireless infrastructure management from companies such as mFormation Technologies Elimination of barriers to adoption…for example, recent 3G announcements from companies such as Sprint PCS Demand Side Strategy formulation…value proposition and business case development Pilots…paving the way for process and behavior change required to exploit wireless and mobile solutions Implementation by early adopters…for example InfoWave and American University Wireless Data Examples American University 		American University asked KPMG Consulting to conduct a detailed study and pilot to determine the viability of offering wireless voice and data service to students, faculty and staff. The KPMG Consulting team combined market research, financial analysis and competitive analysis to evaluate and validate the opportunity. KPMG Consulting then helped the client select vendors and conduct a two month pilot of a wireless voice and data system.. 		The successful conclusion of the pilot validated the wireless strategy and proposed wireless network. On May 1, 2002, American University announced their plans to implement campus-wide, the wireless system to handle voice, data and messaging. InfoWave 		Infowave develops software that allows mobile and disparate workforces to access corporate networks using wireless devices . To support its rapid and dynamic growth, the client wanted to implement a CRM solution to provide more accurate, up-to-date customer information to its sales force and channel partners. 		The wireless CRM solution was deployed to end-users within sales (inside and regional), marketing, product management, 	customer service, corporate communications, investor relations and to the executive team. The solution provided users with real-time, read/add/update functionality while connected wirelessly. Within a standard web browser on their mobile device, users have real-time visibility into the entire prospect/customer profile.  Some of early ROI metrics include: Improved Productivity (sales cycle reduction of 50%, improvement of lead receipt to response by 100%) Reduction in Operating Costs (reduction in partner-related costs by 50%, more effective use of marketing expenditures) Gain in Market Share (increase in customer base by 20%) Improvement in Bottom Line (increase in customer-paid installations by 300%) eCustomer World Golden Award 2001 for excellence in its Mobile CRM Solution category 	 What’s Needed? What will aid enterprise adoption of Mobile Business and Web Services? Improved economic climate and industry maturity Focus on business benefits not technical distractions Compelling value propositions for enterprise adoption Solutions that accommodate today’s limitations in devices, standards, bandwidth and coverage Pioneers and early adopters generating success stories and ROI stories Serious pilots with clear objectives and not “science fairs” Carefully executed strategies and deployments that leverage synergies between these emerging and disruptive technologies Fundamental understanding that emerging technologies are the next competitive advantage Mobile Business & Web Services Industry Scenarios Examples of where mobile business and Web services can be applied in combination to solve enterprise requirements Best Practices Recommendations for enterprises when considering the convergence of mobile business and Web services Industry Scenarios – Chemicals 	 Creating the Real-Time Enterprise – Mobility and Business Process Performance Management (BPPM) A chemicals company using wireless and mobile devices as part of a business process performance management system tied to sales and field operations. Benefits / Observations Mobile devices help to move to the required level of visibility and access to information Provides sales force with alerts related to sales opportunities (leads) and sales exceptions (customer purchasing patterns out of limits, inventory unavailable, logistics issues) Management by exception – mobile device becomes a business device monitoring the business activities and key performance indicators Mobile devices provide an alert mechanism for faster response to business process exceptions Application integration accomplished via Web services Industry Scenarios - Communications 	 Creating New Revenue Streams - Delivery and Integration of Digital Services  A mobile handset manufacturer moving into digital services such as downloadable ring tones has two challenges – payload delivery to the device and back-end integration with wireless carrier billing systems. Benefits / Observations Mobile devices are the end point for the payload delivery – effectively serving as the subscriber for Web services New integration techniques such as Web services can help to speed integration and reduce costs of connecting into back-end carrier billing systems Wireless Internet value chain is enhanced via web services – complexity is reduced and open standards help to foster inter-connection of value chain participants Industry Scenarios - Software 	 Creating New Services – Mobile platforms climbing up the stack incorporating Web services-based applications  A wireless middleware vendor moving up the stack via acquisition of a vendor in the field force automation space. They are adding workflow on top of their basic transcoding engine and supporting standards such as SOAP both in the development environment and the runtime environment. Benefits / Observations Mobile business technologies are becoming embedded into all applications All applications are gaining web services functionality as software moves towards the software as a service (SaaS) model Result will be that most software will have mobile functionality and web services functionality as key infrastructure elements that support the business functionality Industry Scenarios - Manufacturing 	 Supply Chain Visibility – Mobile devices and web services for speeding vendor quality management Within the supply chain, information on the quality of goods received at a warehouse is recorded on a PDA with wireless connectivity. The results are transmitted to a real-time system, coupled with web services integration to partner systems, in order to manage vendor quality. The real-time nature of the information flow helps reduce cycle times and increase productivity compared with more traditional batch-orientated processes. Information captured electronically at the point of activity also eliminates the need for duplicate data entry in the back office, hence improving data accuracy. Benefits / Observations Mobile devices help to ensure data accuracy and information capture at the point of business activity Real-time systems help to ensure zero latency from data collection at the warehouse to integration and reporting to partner systems Web services help to ease integration with multiple partner systems Take a Holistic Approach Look at Fundamental Synergies 2) Both mobile business and Web services apply to today’s enterprise initiatives – virtual, real-time, ubiquitous and “back-to-basics” via cost takeout and performance improvement Mobile Business Not just the intersection of Internet and Wireless Not just the “wireless web” Allows new business models, new processes, and real-time computing Removes former process bottlenecks and permits information and transactions at the edge of the corporation Web Services Not just for integration Not just cost reduction and complexity management Allows new business models, new processes and real-time computing Allows dynamic assembly of business transactions and loosely-coupled integration Mobile Business & Web Services Impact: Allows us to start to shape technology around ourselves and our business processes instead of shaping ourselves around technology Incorporate Process 3) Incorporate process and well as technology Mobile Business Opportunity to create entirely new processes as well as to re-engineer old processes. Opportunity to eliminate both “static” and “dynamic” bottlenecks – queues (too little movement) or work away from point of business (too much movement) Web Services Web services and business process management. Concept of “business services orchestration” (Fuego) across people and applications – mobile devices included Mobile Business & Web Services Impact: As you view mobile business from a process perspective, Web services can serve as the enabler to publish and subscribe to software services in a process-oriented approach. The mobile device interaction becomes part of the process. Move towards Real-Time 4) Understand your per project needs on the mobility continuum Mobile Business: Need for real-time information and real-time connectivity (wireless WAN) vs. more batch-oriented daily connectivity (wireless LAN and cradle synchronization). Web Services: Dynamic assembly, business webs Mobile Business & Web Services Impact: As you move towards the real-time enterprise, these two technologies become more intricately linked. Plan your projects accordingly based upon their real-time requirements.  Look at Software Platform Convergence 5) Plan for software platform convergence Mobile Business Convergence of EAI, application server and mobile server functions Web Services Incorporation of Web services technologies into application server platforms Mobile Business & Web Services Impact: As vendors build out the functionality of their application server platforms, mobile business and Web services support will become standard. Plan your IT architecture accordingly. Best Practices Summary of Enterprise Recommendations 1) Take a holistic approach Don’t consider Mobile Business or Web Services in a vacuum 2) Look at fundamental synergies Both mobile business and Web services apply to today’s enterprise initiatives – virtual, real-time, ubiquitous and “back-to-basics” via cost takeout and performance improvement 3) Incorporate process Incorporate process and well as technology 4) Move towards to real-time Understand your per project needs on the mobility continuum 5) Look at software platform convergence Plan for software platform convergence Contacts John Delk – Managing Director, Emerging Technology Solutions (678) 731-2020, jdelk@kpmg.com Bob Quicke – Sr. Vice President, Software & Services Segment (650) 404-3801, rquicke@kpmg.com Nick Evans – Director, Emerging Technology Solutions (972) 373-7429, ndevans@kpmg.com http://www.kpmgconsulting.com/solutions/wireless_internet_solutions/index.html Further Information Learn about wireless in our Web Series on Mobile Opportunities! View 1 hour presentations anytime on the Web! Further Reading Trends & Opportunities “ A common goal for the next software generation ” Financial Times, December 27th, 2001 http://globalarchive.ft.com/globalarchive/article.html?id=011227003048&query=Nicholas+Evans “Warning: Colliding IT Trends Ahead ” Internet Week, August 22nd, 2001 http://www.internetweek.com/ebizapps01/ebiz082201.htm “Best practices for enterprise mobility” .NET Magazine, February, 2002 http://www.fawcette.com/dotnetmag/2002_02/magazine/departments/guestopinion/default.asp “Dissecting the Web Services Value Chain” .NET Magazine, April 2002 http://www.fawcette.com/dotnetmag/2002_04/magazine/columns/webservices/ Return on Investment “High Risk, High Rewards” Optimize Magazine, March 2002 http://www.optimizemag.com/issue/005/roi.htm Q&A 	“ Over the past decade, the technical challenge for businesses has been to implement 	large packaged software applications such as enterprise resource planning, customer 	relationship management and supply chain management systems. The challenge over 	 the next decade will be to implement the next generation of software in a manner that 	is category-agnostic. 	 	In other words, how enterprises exploit the business and technical linkages and 	overlaps between software categories and components will be more critical than the 	functions of the components themselves. As enterprises become more virtual and 	more business functions are outsourced, the raw elements of speed and flexibility, and 	the level of collaboration between software components will be key factors in creating competitive advantage” – Nick Evans, KPMG Consulting Inc.  About KPMG Consulting, Inc. Our Partners are Leaders KPMG Consulting has more than 50 strategic alliances with leading eBusiness solution providers--partners such as: Sun Microsystems Cisco Systems FedEx Corporation Our Philosophy Ensures Success KPMG Consulting professionals live our philosophy of delivering outstanding client value by combining real-world, industry-relevant experience with innovative uses of technology. One of the World's Largest Consulting Firms KPMG Consulting employs 10,000 people and serves more than 2,500 clients in both the public and private sectors. Headquartered in McLean, Virginia, we have principal offices in 16 countries on four continents. First Big IPO of 2001 KPMG Consulting became public corporation on February 8, 2001 NASDQ symbol: KCIN Our Business is eBusiness Our core service offering is end-to-end eBusiness integration. This offering encompasses: Supply Chain Business and Technology Strategy  Trading Partner Integration and Exchanges  Integration and On-Boarding  Integrated Enterprise Operations Systems and Technology Integration Network Solutions and Web Architecture Outsourcing Strategy and Processes Internet Strategy/Branding Customer Care Online Training KPMG Wireless Solutions readySetGO!mobile 	Success roadmap to gain new ROI by applying wireless and mobile computing technology R2i Mobile 	Provides clients with a methodology for implementation of Wireless solutions for their organization utilizing pre-defined reference architectures designed to achieve a fast implementation of a solution which focuses on solving real-world business problems. Wireless LANs Provides clients with the design and implementation of WLANs targeted at achieving business value. More focused on the integration with applications running on WLAN’s than on just the implementation of the WLANs themselves Transaction Platforms 	Provides clients with the strategy, design and implementation of Transaction Platforms targeted at specific industry verticals. Key characteristics of these solutions are that they focus specific solution aspects which are required to complete transactions. Among these key solution aspects are Security, Mobile Wallet, Transaction Processing, and Scalability. Wireless Transaction Platforms Strategy System Integration Enablement Roadmap Transactions  Access Network Some of these emerging and disruptive technologies will improve business processes, others have the potential to reshape entire industries The “Map” positions technologies according to the level of impact when deployed and the level of penetration Business Impact Reshape Industries Reshape Business Processes Improve Business Processes Business Penetration by 2003 10%  20%  30%  40% 50%  60%  70%  80%  90% Wireless Web * mCommerce * Web Services * Voice-over-IP * Enterprise Portals * Enterprise Instant Messaging * ASPs * * P2P * Wireless LAN Embedded Tags * Natural Language Interface * Source: ITExpo, 2001 Large Market Moderate Market Small Market BPPM Web Services Peer Services Wireless Infrastructure Mgmt Real-Time M-Commerce FY04+ FY04+ FY05+ FY05+ FY 02-03 Linux BPO Broadband Potential Market Size BPM Embedded Systems Security Embedded Systems Linux Wireless Infrastructure Management M-Commerce Broadband Business Process Outsourcing (BPO) Web Services Peer Services & Collaboration Real-Time Enterprise Business Process Management (BPM) Business Process Performance Management (BPPM) Security M-Business Drivers Anytime, anywhere mobile access to enterprise processes and information Increased revenues Increased customer satisfaction and retention Reduction of costs Improved efficiencies and productivity Reduced cycle times Ability to make faster and more informed decisions Differentiation from the competition Improved data accuracy Web Services Drivers Software as a service movement “Unbundling” of enterprise processes – virtual enterprise Reduction of complexity Migration towards real-time enterprise Reduction of cost for development efforts Interoperability across heterogeneous devices and applications Loosely-coupled integration that can accommodate changes to business process Mobile Business Web Services Enterprise Trends Trend Yes Yes Need for timely access to business-critical applications and information Real-Time Enterprise Yes Yes Increasing user mobility and accelerated pace of work Ubiquitous Enterprise Yes Yes Outsourcing of non-core competencies, software as a service Virtual Enterprise Yes Yes Performance improvement and cost takeout Back To Basics Enterprise Enterprise production implementations CRM, SFA, SCM, Business Intelligence Advanced Devices Telematics Location-Based Services Widespread Enterprise Production Implementations Multi-modal interfaces Context Aware Artificial Intelligence RFID (“Bits and Atoms”) M-Commerce Strategy Execution 4 1 2 Viral Enterprise Mobility Trends & Timeline Enterprise education / research Hype around the “Wireless Web” Mostly consumer focused WAP Stocks, News, Weather Enterprise pilots in e-mail, PIM, CRM / SFA Early strategy formulation Wireless Middleware WASPs Unified Messaging Enterprise strategy formulation Digital Services 3G Production Deployments WLAN Adoption barriers are removed Education 2005+ Late Majority  2003 Early Majority 2002 “ Chasm” 2001 Early Adopter 1999 - 2000 Pioneer Enterprise Production Deployments of Wireless Data 	1) Don’t consider Mobile Business or Web Services in a vacuum Mobile Business: Additional channel that enhances existing channels. Just as E-Business becomes embedded in the business so will M-Business Web Services: Emerging technologies can also play a role – web services, peer services, embedded systems (machine-to-machine) Business Impact Reshape Industries Reshape Business Processes Improve Business Processes Business Penetration by 2003 10%  20%  30%  40% 50%  60%  70%  80%  90% Wireless Web * mCommerce * Web Services * Voice-over-IP * Enterprise Portals * Enterprise Instant Messaging * ASPs * * P2P * Wireless LAN Embedded Tags * Natural Language Interface * Source: ITExpo, 2001 Mobile Business & Web Services Impact: Along with web services, M-Business technologies represent another emerging technology category that has the potential to reshape entire industries! Mobility Continuum Cradle Synchronization (Batch) Wireless LAN (Hourly) e.g. warehouse activity Wireless WAN (Near Real-Time) e.g. sales leads e.g. order status Real-Time Enterprise Web services for dynamic assembly of pre-arranged partners Web services for enterprise application integration Static or Batch Transactions Application Servers Mobile Servers EAI / B2B Servers Web Services Support Wireless: The Foundation for Enhanced Productivity- Presented by Cisco Systems Extending the Enterprise- Presented by Siebel Systems From Enterprise to End Device- Presented by Selectica Wireless in Action-Real Examples- Presented by Brience Strategic Mobile Solutions- Presented by KPMG Consulting Registration: 			http://kpmgcmobile.tv White Paper RSG!mobile: 	http://www.kpmgconsulting.com/library/whitepapers/readysetgo.html * *